Mansfield mfg & fdi presentation

1. EMBRY-RIDDLE
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Robert E. Mansfield, Jr., Brig Gen, USAF (RET)
Executive Director
Center for Aviation and Aerospace Leadership
Foreign Direct Investments in the U.S.
and the
U.S. Aerospace Manufacturing Industry
Foreign Direct Investment into the U.S.

2. EMBRY-RIDDLE
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Overview
Background
Key Drivers of Foreign Direct Investment
AT Kearney 2013 Confidence Index
Foreign Direct Investment and GDP Growth in the United States
Size and Scope of Foreign Direct Investment in the United States
Foreign Direct Investment in the United States by Industry
Foreign Direct Investment in the United States by Region
Foreign Direct Investment in the United States and the Aerospace
Industry by
– Position
– Inflows
– Income
Foreign Direct Investment Benefits for the U.S.
Major Foreign Aerospace & Defense Manufacturers
2Foreign Direct Investment in the U.S 2014

3. EMBRY-RIDDLE
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Background
Foreign direct investment plays an important role in the U.S.
economy
– Job creation
– An increase in wealth and living standards
– Growth and innovation that drive U.S. economic competitiveness.
The U.S. has been the world’s largest recipient of FDI since 2006.
Countries have confidence in the United States
3Foreign Direct Investment in the U.S 2014
Note: The Bureau of Economic Analysis defines Foreign Direct Investment in the U.S. (inward
direct investment) as ownership by a foreign investor of at least 10 percent of a U.S. business.
Note: The Bureau of Economic Analysis defines Foreign Direct Investment in the U.S. (inward
direct investment) as ownership by a foreign investor of at least 10 percent of a U.S. business.

4. EMBRY-RIDDLE
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Key Drivers of FDI into the U.S.
Open investment environment
Large economy with big and diverse consumer markets
Huge skilled labor force
Excellent schools and community colleges
World’s top research universities
Predictable regulatory history with appropriate intellectual property
protections
Robust infrastructure
Stable and growing energy sector with new sources of energy
4Foreign Direct Investment in the U.S 2014

5. EMBRY-RIDDLE
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AT Kearney 2013 Confidence Index
5
Foreign Direct Investment in the U.S 2014
Note: Confidence measured on a scale from 0
(no confidence) to 3 (high confidence)

6. EMBRY-RIDDLE
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GDP Growth and FDI
6Foreign Direct Investment in the U.S 2014

7. EMBRY-RIDDLE
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Size and Scope of FDI into the United States
The U.S. consistently ranks as one of the top destinations in the
world for FDI.
As of 1 January 2013, FDI inflows totaled $187.5 billion
The U.S. manufacturing sector draws a considerable share of
FDI, led by pharmaceuticals, petroleum, coal, and aerospace
products.
Since 2010, Japan, Canada, Australia, and seven European
countries have accounted for more than 80 percent of new
FDI.
However, small flows from emerging economies like China and
Brazil are growing rapidly
7Foreign Direct Investment in the U.S 2014
Source: New Report: Foreign Direct Investment In the United States. Retrieved from http://www.whitehouse.gov/the-press-office/2013/10/31/new-report-
foreign-direct-investment-united-states

8. EMBRY-RIDDLE
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Top Investor Countries 2010-2012 Average
8Foreign Direct Investment in the U.S 2014

9. EMBRY-RIDDLE
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Trends in Top U.S. Aerospace Export Markets
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Millions of U.S. Dollars
Source: U.S. Department of Commerce, International Trade Administration, TradeStats Express.

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Trends in U.S. Aerospace Imports by Country
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Source: U.S. Department of Commerce, International Trade Administration, TradeStats Express,

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Trade Balance in Selected Products 2012
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*Due to non-disclosure requirements, certain commodity classifications are subject to suppression and require a change in aggregation. For additional
information see www.census.gov/ft900.
Source: U.S. Bureau of Economic Analysis

12. EMBRY-RIDDLE
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Aerospace Exports to World by State 2013
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Rank State 2009 2010 2011 2012 2013
2012 to 2013 (%
Change)
1 Washington 26,479 23,322 27,163 37,111 43,711 18
2 California 6,683 6,100 6,798 7,995 10,073 26
3 Connecticut 6,241 6,813 6,654 6,982 7,809 12
4 Georgia 3,442 4,499 5,929 5,639 6,753 20
5 Kentucky 4,721 3,560 3,522 3,835 5,631 47
6 Texas 4,893 4,484 5,145 5,636 5,612 0
7 Florida 3,977 4,471 4,989 5,736 5,272 -8
8 Ohio 4,118 4,698 5,427 5,663 5,063 -11
9 Arizona 2,148 1,987 2,373 2,603 3,095 19
10 New York 2,701 2,428 2,590 2,512 2,085 -17
11 Kansas 2,868 2,124 2,127 2,101 1,858 -12
12 Arkansas 1,679 585 490 1,867 1,843 -1
Millions of U.S. Dollars
Source: TradeStats Express, International Trade Administration, U.S. Department of Commerce, February 2014.

13. EMBRY-RIDDLE
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Economic Activities of US Affiliates of Foreign Companies
13Foreign Direct Investment in the U.S 2014

14. EMBRY-RIDDLE
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FDI Position in U.S. by Industry 2012
14Foreign Direct Investment in the U.S 2014
Source: Bureau of Economic Analysis

15. EMBRY-RIDDLE
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FDI Position in U.S. by Region 2012
15Foreign Direct Investment in the U.S 2014
Source: Bureau of Economic Analysis

16. EMBRY-RIDDLE
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FDI Position: All Industries
16Foreign Direct Investment in the U.S 2014
Source: Bureau of Economic Analysis

17. EMBRY-RIDDLE
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FDI Position: Manufacturing and Aerospace
17Foreign Direct Investment in the U.S 2014
Source: Bureau of Economic Analysis

18. EMBRY-RIDDLE
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FDI Financial Inflows: All Industries
18Foreign Direct Investment in the U.S 2014
Source: Bureau of Economic Analysis

19. EMBRY-RIDDLE
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FDI Financial Inflows: Manufacturing and Aerospace
19Foreign Direct Investment in the U.S 2014
Source: Bureau of Economic Analysis

20. EMBRY-RIDDLE
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FDI Income: All Industries
20Foreign Direct Investment in the U.S 2014
Source: Bureau of Economic Analysis

21. EMBRY-RIDDLE
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FDI Income: Manufacturing and Aerospace
21Foreign Direct Investment in the U.S 2014
Source: Bureau of Economic Analysis

22. EMBRY-RIDDLE
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Top Foreign Aerospace & Defense Manufacturers
Industry Week 1000 Rank
(2013/2012)* Company Name Country
Revenue
(Millions of Dollars)
Revenue
Growth
52 / 59 Airbus Netherlands $ 74,694 14.45
167 / 158 BAE Systems PLC United Kingdom $ 27,036 -6.26
184 / 187 Finmeccanica SpA Italy $ 24,550 1.11
234 / 256 Rolls Royce Holdings PLC United Kingdom $ 19,655 8.94
654 / 702 Embraer SA Brazil $ 6,135 9.92
740 / 727 Dassault Aviation SA France $ 5,195 -3.83
780 / 823 Smiths Group PLC United Kingdom $ 4,884 6.62
818 / 925 Zodiac Aerospace France $ 4,548 25.65
828 / 888 MTU Aero Engines Holdings AG Germany $ 4,461 15.2
928 / 943 Saab AB Sweden $ 3,735 2.79
954 / 822 Gamesa Corporacion Tecnologica SA Spain $ 3,571 -20.19
*Rank based on 2012 Revenue Source: Industry Week
22Foreign Direct Investment in the U.S 2014

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Boeing’s Estimate of New Deliveries by 2031
23Arkansas Aerospace Summit 2014
Source: Boeing. Current Market Outlook 2012–2031.

24. EMBRY-RIDDLE
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Projected Worldwide RPK Growth 2012–2031
24Arkansas Aerospace Summit 2014
Source: Japan Aircraft Development Corporation. Worldwide Market Forecast for Commercial Air Transport, 2012–2031.

25. EMBRY-RIDDLE
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Boeing Air Freighter Forecast
25Arkansas Aerospace Summit 2014
Source: Boeing. Current Market Outlook 2012–2031.

26. EMBRY-RIDDLE
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Summary
FDI supports a host of benefits in the United States, notably
good jobs and innovation led by research and development
investment.
Industrial countries are the primary source of FDI to the United
States, however,
Emerging markets are becoming a bigger source of FDI and
their share should be expected to increase as institutional and
structural barriers in those countries decline.
About one-third of jobs at U.S. affiliates are in the manufacturing
sector.
FDI into the U.S. aerospace industry has increased over the
past five years.
Expect growth in global aerospace product and service
demand.
26Foreign Direct Investment in the U.S 2014

27. EMBRY-RIDDLE
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Aerospace Industry Report , 3rd
Edition
The third edition of the Aerospace Industry
Report provides a comprehensive
industry outlook with:
11 Chapters
408 Pages
174 Figures
28 Tables
86 Pages of Additional Facts, Figures
and data
4th
Edition in Work – Fall 2014
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